Texas Business & Commerce Code - Section 2.319. F.O.B. And F.A.S. Terms
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§ 2.319. F.O.B. AND F.A.S. TERMS. (a) Unless otherwise
agreed the term F.O.B. (which means "free on board") at a named
place, even though used only in connection with the stated price, is
a delivery term under which
(1) when the term is F.O.B. the place of shipment, the
seller must at that place ship the goods in the manner provided in
this chapter (Section 2.504) and bear the expense and risk of
putting them into the possession of the carrier; or
(2) when the term is F.O.B. the place of destination,
the seller must at his own expense and risk transport the goods to
that place and there tender delivery of them in the manner provided
in this chapter (Section 2.503);
(3) when under either Subdivision (1) or (2) the term
is also F.O.B. vessel, car or other vehicle, the seller must in
addition at his own expense and risk load the goods on board. If the
term is F.O.B. vessel the buyer must name the vessel and in an
appropriate case the seller must comply with the provisions of this
chapter on the form of bill of lading (Section 2.323).
(b) Unless otherwise agreed the term F.A.S. vessel (which
means "free alongside") at a named port, even though used only in
connection with the stated price, is a delivery term under which the
seller must
(1) at his own expense and risk deliver the goods
alongside the vessel in the manner usual in that port or on a dock
designated and provided by the buyer; and
(2) obtain and tender a receipt for the goods in
exchange for which the carrier is under a duty to issue a bill of
lading.
(c) Unless otherwise agreed in any case falling within
Subsection (a)(1) or (3) or Subsection (b) the buyer must
seasonably give any needed instructions for making delivery,
including when the term is F.A.S. or F.O.B. the loading berth of the
vessel and in an appropriate case its name and sailing date. The
seller may treat the failure of needed instructions as a failure of
cooperation under this chapter (Section 2.311). He may also at his
option move the goods in any reasonable manner preparatory to
delivery or shipment.
(d) Under the term F.O.B. vessel or F.A.S. unless otherwise
agreed the buyer must make payment against tender of the required
documents and the seller may not tender nor the buyer demand
delivery of the goods in substitution for the documents.
Acts 1967, 60th Leg., p. 2343, ch. 785, § 1, eff. Sept. 1, 1967.
Section: 2.312 2.313 2.314 2.315 2.316 2.317 2.318 2.319 2.320 2.321 2.322 2.323 2.324 2.325 2.326
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Last modified: August 10, 2007
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